Report: Firm to Bid For Global Crossing

Report: Firm to Bid For Global Crossing

Dave Eberhart, NewsMax.com
Monday, March 4, 2002

An investment firm that specializes in buying failed technology companies is making a bid to acquire Global Crossing Ltd., one of the largest companies ever to file for Chapter 11 bankruptcy protection, according to a published report.

The Los Angeles Times reported Sunday that Gores Technology Group, will make a bid for Global Crossing in federal Bankruptcy Court in New York as early as this week.

The offer represents the third bid for Global Crossing, which lost more than $5 billion building a fiber-optic network that covers most of the world.

The Bermuda-based company, which has offices in Beverly Hills, Calif., filed for bankruptcy protection on Jan. 28, listing $22.4 billion in assets and $12.3 billion in debt.

Although it's not known how much Gores plans to offer, the company would have to beat a $750 million reorganization offer submitted by Hutchison Whampoa of Hong Kong and Singapore Technologies Telemedia.

The minimum Gores could offer would be $800 million, including a $40 million penalty fee for the two Asian companies, according to the terms of Global Crossing's bankruptcy rescue proposal.

A Gores Technology spokesman declined to comment, the newspaper said.

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